Metsä Board Annual Review 2024

METSÄ BOARD Annual review 2024

Maturity of financial liabilities and related financial expenses 2024

Market risk sensitivity 2024

Impact on equity exposure and annual transaction exposure

EUR million

2025

2026

2027 250.0

2028

2029

2030–

Total 250.0 164.7

Impact on annual transaction expo- sure (cash flow) incl. hedging

Bonds

Impact on financial assets and liabilities

Impact on net equity of foreign entities

Impact on annual transaction expo- sure (cash flow)

Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6

Loans from financial institutions

11.8

111.8

11.8

5.9 1.2 7.0

MEUR

Finance lease liabilities

6.7

4.5

3.2

1.7

1.2

18.5

Interest rate risk (100 bp rise in interest rates) Effect on profit

Non-current interest-bearing liabilities total

18.4

116.3

265.0

13.5

13.0

433.2

-0.5

-0.2

Effect on other change in equity

0.3

Current interest-bearing liabilities Trade payables ja other liabilities

96,4

Commodity risk (electricity price + 20%) Effect on profit

322,6

Strategy and financial targets

-8.2

-1.9

Value creation

Effect on other change in equity

6.3

Financial liabilities total Financial expenses total

437.5

116.3

265.0

13.5

13.0 0.2 13.1

7.0

852.2

11.4

10.3

7.3

0.3

0.0

29.4

FX risk (USD - 10%) Effect on profit

Financial development 10 Key figures 12

Financial liabilities and expenses total

448.8

126.6

272.2

13.8

7.1

881.6

1.3

-85.5

-29.8

Effect on other change in equity

48.0

-9.6

Guarantee agreements

0.1

0.4

0.3

0.7

FX risk (GBP - 10%) Effect on profit

Report of the Board of Directors

0.1

-11.9

-4.8

Derivatives Currency derivative, liabilities Currency derivative, receivables

Effect on other change in equity

6.4

-0.6

20 20 37 70 89 96

• Sustainability statement

1,356.5 -1,332.2

FX risk (SEK - 10%) Effect on profit

General information

-1.3

57.3

17.4

Interest rate swaps

-0.3 -3.6

E – Environment

Effect on other change in equity

-36.0

-75.6

Commodity derivatives

S – Social responsibility

Derivatives, net

20.5

G – Governance

Market risk sensitivity 2023

Annexes to the Sustainability statement

Impact on equity exposure and annual transaction exposure

Maturity of financial liabilities and related financial expenses 2023

Impact on annual transaction expo- sure (cash flow) incl. hedging

Impact on financial assets and liabilities

Impact on net equity of foreign entities

Impact on annual transaction expo- sure (cash flow)

98 Consolidated financial statements 102 Notes to the consolidated financial statements 150 Parent company financial statements 153 Notes to the parent company financial statements 166 The Board’s proposal to the Annual General Meeting for the distribution of funds 167 Auditor’s Report 171 Sustainability statement assurance report 173 Shares and shareholders 177 Ten years in figures 178 Taxes 179 Production capacities 181 Calculation of key ratios and comparable performance measures Corporate governance 183 Corporate governance statement 190 • Board of Directors of Metsä Board 194 • Corporate Management Team of Metsä Board

EUR million

2024

2025

2026

2027 249.2

2028

2029–

Total 249.2 176.5

MEUR

Bonds

Interest rate risk (100 bp rise in interest rates) Effect on profit

Loans from financial institutions

11.8

111.8

11.8

11.8 0.3 12.1

17.6

1.8

2.3

Finance lease liabilities

5.7

3.8

1.8

1.1

0.7

13.5

Effect on other change in equity

0.5

Non-current interest-bearing liabilities total

17.5

115.6

13.6

262.8

18.4

440.0

Commodity risk (electricity price + 20%) Effect on profit

Trade payables ja other liabilities

316.2

-8.6

-3.3

Effect on other change in equity

5.3

Financial liabilities total Financial expenses total

333.7

115.4

13.6

262.8

12.1

18.3

755.8

FX risk (USD - 10%) Effect on profit

12.5

8.9

7.4

7.3

0.3

0.2

36.5

3.9

-69.1

-21.2

Financial liabilities and expenses total

346.2

124.3

21.0

270.1

12.4

18.5

792.4

Effect on other change in equity

51.3

-11.2

FX risk (GBP - 10%) Effect on profit

Guarantee agreements

0.2

1.3

1.6

0.1

-11.7

-4.1

Effect on other change in equity

5.8

-0.4

Derivatives Currency derivative, liabilities Currency derivative, receivables Interest rate swaps, liabilities Interest rate swaps, receivables Commodity derivatives, liabilities Commodity derivatives, receicables

FX risk (SEK - 10%) Effect on profit

1,144.3 -1,168.1

-3.1

44.8

9.5

Effect on other change in equity

-31.6

-69.8

-0.7 4.0

-0.9

-1.5 4.0

Items with + sign = positive effect = increase of assets / decrease of liabilities / increase of cash flow Items with - sign = negative effect = decrease of assets / increase of liabilities / decrease of cash flow

-20.5

-0.9

-21.4

-0.2

Derivatives, net

-20.5

-0.9

-21.4

An entity to required to disclose a sensitivity analysis for each type of market risk to which the entity is exposed at the reporting date, showing how profit or loss and equity would have been affected by changes in the relevant risk variable that were reasonably possible at that date. The Group has recognised interest rates, electricity prices and foreign exchange rates as its key market risks and has set 1% interest rate rise, 20% rise in electricity price and 10% weakening of USD, GBP and SEK as reasonably possible risk variables. These currencies represent over 97% of Group’s annual transaction exposure. The nature of the market price risk is relatively linear so that the size of effects of opposite market price changes do not essentially differ from the presented figures. The scenarios have been calculated by using regular principles of calculating market values of financial instruments described in the Group Accounting policies. Figures at the reporting date reflect quite well the average market risk conditions throughout the reporting period.

Additionally the Group is presenting figures describing the effects of the risk variables to its equity and annual transaction exposure (cash flow) to present a broader picture about market risks of interest rates, electricity prices and foreign exchange rates. Annual cash flows are based on esti- mates, and not not existing commercial contracts. The weakening of USD and GBP has a negative impact on annual cash flow and the weakening of SEK has a positive impact. Hedges reduce this impact depending on hedging strategy. The impact on equity of foreign entities is arising from the consolidation of subsidiaries to the Group consolidated accounts. The rise of electricity price has a negative impact on cash flow. As according to hedging policy the electricity price risk of the nearest year has mostly been hedged, the impact including hedges remains minor.

The cash flows of lease liabilities include both debt repayment and finance expense . The table describes the maturity distribution of financial liabilities based on contracts. The figures are undiscounted. The balance sheet value of lease liabilities was EUR 17.2 million (12.8). The balance sheet value of for- eign currency derivative liabilities was EUR 29.5 million (6.0) and the balance sheet value of foreign currency derivative assets was EUR 5.2 million (29.8).

196 Remuneration report 201 Investor relations and investor information

136

137

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2024